#BITCOIN Clean Bullish Engulfing (Daily) 24.05.2021

Yesterday I pointed to a possible rally to 45000-46000. It looks like it’s ongoing and BTC formed a strong Bullish Engulfing in the process. Forecast below.

My main hypothesis is that the coin completed wave 5 of C of IV as an Ending Diagonal with a truncation. If this is correct, a very strong rally should follow.

However! Note that the price is yet to break the daily 8 and 20 EMA lines, make an 8/20 EMA cross and many other technical hurdles. Also, the volume does not correlate well with price advances.
In short, the damage was done on the weekly scale and it needs to be resolved on the weekly scale. So far, we are seeing only one day of an advance, though I must admit it was a strong one, flipping the odds to the bear’s side.

FORECAST:

  1. If BTC continues the rally in the next few days with the strong green candles, I would be leaning towards 71000-87000 as the next target. The Green path on the Long Term chart below.
  2. If BTC stumbles, alternating the red and green, there is a good chance for the Blue path and, possibly a lower low in the next several weeks/months.

So far, a few unknowns and I am waiting for the weekly and monthly (May 31) candles for a confirmation.

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